Should You Buy ASML Holding Stock Before July 15?

ASML Holding (NASDAQ: ASML) is one of the most important companies in the global semiconductor ecosystem. The Dutch bellwether makes advanced chipmaking equipment used by leading foundries, memory manufacturers, and integrated device manufacturers (IDMs) to print chips that power a range of applications.

These advanced chips are made using ASML's extreme ultraviolet lithography (EUV) machines, which allow its customers to print billions of transistors onto a silicon wafer using light patterns. ASML is the only company that makes these EUV machines, which are used to fabricate advanced chips that go into artificial intelligence (AI) data centers, smartphones, personal computers (PCs), and other applications.

Not surprisingly, ASML stock has jumped by an impressive 50% so far in 2026. The company is going to release its second-quarter results on July 15, and there is a good chance it will report better-than-expected results and guidance.

Let's see why that may be the case.

Image source: ASML.

Advanced chip nodes are in terrific demand, and that's great news for ASML

Advanced chip nodes are manufactured by etching smaller transistors onto a silicon wafer. The smaller size of a transistor means that more of them can be crammed into a wafer. This allows electrons to move quickly between transistors, leading to greater computing power. Also, as more transistors are packed more closely together, chips made using advanced nodes generate less heat, thereby improving power efficiency.

Advanced nodes are those with transistors smaller than 7 nanometers (nm). However, semiconductor fabs and chip designers are now using even more advanced 2nm and 3nm process nodes to design AI chips that go into data centers. Even memory manufacturers, such as SK Hynix and Micron Technology, are using EUV machines to make faster memory chips that consume less power.

As ASML is the only manufacturer of EUV machines, it is easy to see why the company's business has been growing at a healthy pace over the past couple of years.

Data by YCharts

The good news is that the demand for advanced process nodes is projected to increase at an annual rate of nearly 16% through 2034, according to Fortune Business Insights. This should ensure steady growth for ASML over the long run, which explains why analysts have become bullish about its long-term earnings growth prospects.

Data by YCharts

A better-than-expected earnings report and upgraded guidance could give the stock a nice boost

When ASML released its Q4 2025 results in January this year, the company guided for annual revenue of 34 billion euros to 39 billion euros. It raised its guidance in April to 36 billion euros to 40 billion euros, citing solid growth in the semiconductor market, where demand is outpacing supply.

ASML has been benefiting from the heavy investments in AI data centers by hyperscalers and AI companies, which is encouraging foundries and memory manufacturers to ramp up their capital expenditures to increase chip supply. As a result, don't be surprised to see ASML's revenue and earnings landing ahead of Wall Street's expectations next week. Also, the robust demand for advanced chipmaking equipment should translate into another guidance upgrade, which could give the stock a shot in the arm.

Of course, ASML is expensive right now at 48 times forward earnings, but we have already seen analysts have significantly upgraded their growth expectations over the past year. That trend could continue due to the secular growth of advanced chips, paving the way for further upside in this AI stock over the long run.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Micron Technology. The Motley Fool has a disclosure policy.